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This paper discusses the functional distribution of income, as a consequence of decoupling phenomenon between workers’ compensation and labor productivity. This issue has been observed since the mid-1970s in most developed economies, resulting in a trend of decreasing labor income in national income or GDP. Despite conventional economic theory predicting a proportional increase in workers’ income with increases in labor productivity, empirical results suggest that this relationship is not being realized. The study analyzes the distribution of labor income and capital income in relation to GDP in European countries, in order to gain insight into the conditions and trends of labor income and to evaluate the functional distribution of income at the level of an individual country. The paper provides a detailed analysis of labor share on the example of all countries in Europe and compares countries to determine the direction and degree of trend of the labor share. The results highlight the need for further research on this topic and provide insight into the factors contributing to the decoupling of productivity from workers’ compensation.

Copyright of Proceedings of the Faculty of Economics in East Sarajevo / Zbornik Radova Ekonomskog Fakulteta u Istočnom Sarajevu is the property of University of East Sarajevo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista de Economía is the property of Universidade Federal do Parana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

I examine how single motherhood affects income in different quantiles of the distribution in twelve rich countries. Using harmonized data from the Luxembourg Income Study, I show how the distribution of income for households headed by single mothers differs from households with children that are headed by couples. I show that there is a striking variation by country in the influence of single motherhood on income at different points of the distribution. In some countries, such as the United Kingdom, single motherhood has a greater effect on income at the top of the distribution than at the bottom. In others, such as the United States, effects are largest at the bottom of the distribution. I discuss the role of employment and social policies in driving differences between countries in the income penalties associated with single motherhood across the distribution. [ABSTRACT FROM AUTHOR]

This study investigated the inequitable distribution of income and visualized its association with human capital ratio in inclusive wealth by combining global corporate data with inclusive wealth data. The main findings show that employees tend to be better off in countries with a more human-capital-centered productive base, indicating that human capital development plays a vital role in promoting equitable distribution of income. In the pursuit of sustainable development goals, human capital investment could be an effective solution to reduce inequalities. [ABSTRACT FROM AUTHOR]

Distribution of income has been an important area of research in both economics and sports economics literature. However, the sports economics literature regarding European football lacks empirical studies associated with the relationship between revenue generation and competitive balance. This study analyzes the revenue sharing structure in Europe’s top 5 football leagues along with its effects on competitive balance. Trends in the distribution of revenue are illustrated with the help of Lorenz curves and the coefficient of variations of revenue shares. There is significant evidence that there have been severe distortions in the distribution of revenue in European football, and it has been influential in the competition. The revenue shares of the top 5 leagues’ have changed substantially over the last two decades which led to the utter dominance of European football by few clubs. The increasing inequality, in revenue generation and sharing, has affected the competitive balance adversely. The rising financial domination of the giants in European football is widening the gap between them and the lower profile teams hence decreasing the uncertainty of games, which might have adverse effects on the demand for football.

• There is evidence on the endogeneity of labor productivity to the wage and the persistence of wage inequality across similar workers and firms. • We build an evolutionary micro-dynamic model having these two features of the labor market as interconnected. • We explore the implications of such micro-dynamics for the macro-dynamics of the distribution of income, capacity utilization and output growth. • Firms periodically revise (and possibly switch) their choice of remuneration with a higher or lower wage. • The productivity differential across workers is endogenous to the distribution of wage strategies across firms. • The long run features wage inequality as a persistent outcome. • Plausibly low levels of wage inequality cause the micro- and macro-dynamic variables to experience self-sustaining cyclical fluctuations. There is extensive evidence on both the endogeneity of labor productivity to the wage remuneration and the persistence of wage inequality across observationally similar workers and firms. The paper builds an evolutionary micro-dynamic model having these two features of the labor market as interconnected, and explores the ensuing implications for the macro-dynamics of the distribution of income, capacity utilization and output growth. Firms periodically revise (and possibly switch) their choice of remunerating workers with a higher or lower wage, and the resulting labor productivity differential across workers is endogenous to the distribution of wage remuneration strategies across firms. The long run features wage inequality as a persistent outcome. Plausibly low levels of wage inequality cause the distribution of wage remuneration strategies across firms, and therefore the functional distribution of income, capacity utilization and output growth, all to experience self-sustaining cyclical fluctuations. Interestingly, the level of wage inequality is a bifurcation dimension. [ABSTRACT FROM AUTHOR]

The relationship between financial development and inequality is one of the topics that has been studied in many theoretical and empirical studies, but there is still no consensus among economic theorists on this. In Iran, a lot of studies have been done on the relationship between financial development and inequality. These studies are mainly based on the Greenwood and Jovanovic’s nonlinear hypothesis or the Banerjee and Newman’s negative linear hypothesis. And researchers, depending on the number of observations, the type of observation, and the functional form they used, have obtained different results in verifying one of these hypotheses. Since the late 1990s, theoretical literature on financial development and inequality has undergone a major transformation, and economic theorists have introduced new channels for the impact of financial development on inequality, which is mainly not considered in the studies carried out in Iran. In this article, firstly, the theoretical foundations of the studies conducted in Iran are criticized, and then some of the most important new approaches presented regarding the relationship between financial development and inequality are explained briefly.

As a socioeconomic index, inequality in distribution of income and wealth is considered as a marginally sensitive political variable that is simultaneously highly prone to being affected by political structures. On this basis, the recent process of democratization has yielded in occurrence of a series of economic evolutions among which, the most disputed one is redistribution of income and inequality of the former and wealth. The objective of the present research is to investigate and compare the relation between democracy and distribution of income in a selection of member countries of OECD and those of The Islamic Conference between 2001 and 2014. The econometric method used in this research is panel data regression. Results indicate that democracy has a significant impact on GINI coefficient among member countries of OECD and The Islamic Conference. In terms of reduction GINI coefficient, democracy has a greater impact on member countries of OECD compared to those of The Islamic Conference. This shows that compared to member countries of The Islamic Conference, member countries of OECD are more sensitive to democracy. In other words in such societies the right for having a voice expands to the lower classes and economic decision makings are removed from the mere dominance of the few wealthy. In this case, the voters are those who belong to classes of lower incomes and respectively, the tax rate that determines the amount of redistribution and is obtained through polling, increases and resultantly redistribution increases. This is followed by improved living conditions among the poor and the needy people.

U.S. income inequality has risen dramatically in recent decades. Researchers consistently find that greater income inequality measured at the state or national level is associated with diminished subjective well-being (SWB) in the U.S. We conduct the first multi-scale analysis (i.e., at the ZIP-code, MSA, and state levels) of the inequality-SWB relationship using SWB data from the U.S. Gallup Healthways Well-Being Index and income inequality data from the American Community Survey. We use the rich set of SWB measures afforded by the dataset (evaluative, positive hedonic, and negative hedonic) to examine the consistency of the relationship. We find that the relationship is both scale-dependent and measure-dependent: income inequality is SWB-diminishing in large regions for all measures, SWB-diminishing in small regions for negative hedonic measures, and SWB-improving in small regions for evaluative and positive hedonic measures. Lastly, we find that taking all regions together, the net relationship between income inequality and SWB is negative for all hedonic measures. [ABSTRACT FROM AUTHOR]

Over the past decades, the economies of the world have continually experienced economic fluctuations, business cycles, and cycles of boom and recession. Fiscal rules are one of the most important tools of the government with the goal of stabilizing and reducing fluctuations during the business cycle. It is always the minds of many policymakers who are involved in the question of how a policy should be considered during a period of boom or recession. In fact, policy makers are confronted with the question of whether fiscal rules should be used during business cycles. In response to this question, the present study uses a dynamic stochastic general equilibrium (DSGE) model and modeling the National Development Fund to scenario in two modes of applying counterycyclical fiscal rule and its non-implementation. The findings of the study showed that, in the case of petty impacts, a counterycyclical fiscal rule based on oil revenues has reduced the intensity of fluctuations of macroeconomic variables compared to the absence of a fiscal rule. Also, in the case of monetary impulse, there is a significant difference in the effectiveness of the implementation of the fiscal rules there is no indication of its non-application. [ABSTRACT FROM AUTHOR]

This research analyzes the economic effects of Oportunidades on all sectors and their impact on poverty and inequality in Mexico, through linear general equilibrium models. Important results have mainly affected the sectors due to the elimination of transfers from the program for the tertiary sector. This affects the total output of the economy, the first five deciles of households, and recreation, rental housing and other services. In addition, both moderate and extreme poverty would increase by less than one per cent while inequality continue to submit the same initial proportion. [ABSTRACT FROM AUTHOR]

One explanation for the emergence of the housing market bubble and the subprime crisis is that increases in individuals' income led to higher increases in the amount of mortgage loans demanded, especially for the middle class. This hypothesis translates to an increase in the income elasticity of mortgage loan demand before 2007. Using applicant‐level data, we test this hypothesis and find that the income elasticity of mortgage loan demand in fact declines in the years before 2007, especially for the mid‐ and lower‐middle income groups. Our finding implies that increases in house prices were not matched by increases in loan applicants' income. [ABSTRACT FROM AUTHOR]

We examine distributional effects of changes in local air pollution from driving electric vehicles in the United States. An econometric model estimates power plant emissions and an integrated assessment model values damages in air pollution from electric and gasoline vehicles. Using data on currently registered electric vehicles, we find that people in census block groups with median income greater than about $65,000 receive positive environmental benefits while those below this threshold receive negative environmental benefits. On average, Asian and Hispanic residents receive positive environmental benefits, but white and black residents receive negative environmental benefits. In multivariate analyses with census region fixed effects, environmental benefits are positively correlated with income and urban measures and with Asian, black, and Hispanic block-group population shares. Created environmental benefits tend to be larger in states offering purchase subsidies. However, for these states, an increase in subsidy size is associated with a decrease in environmental benefits. [ABSTRACT FROM AUTHOR]

Despite widespread agreement that a carbon tax would be more efficient, many countries use fuel economy standards to reduce transportation-related carbon dioxide emissions. We pair a simple model of the automakers' profit maximization problem with unusually rich nationally representative data on vehicle registrations to estimate the distributional impact of US fuel economy standards. The key insight from the model is that fuel economy standards impose a constraint on automakers that creates an implicit subsidy for fuel-efficient vehicles and an implicit tax for fuel-inefficient vehicles. Moreover, when these obligations are tradable, permit prices make it possible to quantify the exact magnitude of these implicit subsidies and taxes. We use the model to determine which vehicles are most subsidized and taxed, and we compare the pattern of ownership of these vehicles between high- and low-income census tracts. Finally, we compare these distributional impacts with existing estimates in the literature for a carbon tax. [ABSTRACT FROM AUTHOR]

Sustainable development is a very broad concept, and achieving it, is a guarantee of the sustainable welfare of societies. On the other hand, income distribution affects many of sustainable development indicators. As a result, investigating the relationship between the two is essential. Based on this importance, the relationship between these two variables was the goal of this study. The Gini coefficient is selected as the independent variable and the composite index of sustainable development (combination of sustainability of human, physical and environmental capital) as the dependent variable of the research. In order to answer the research question, a panel data regression model for the Iran's provinces during 2008-2014 and using FGLS method have been used. The results show that the relationship between income inequality and composite index of sustainable development is negative and significant. The results also show that the effect of GDP growth rate and energy intensity on the dependent variable of the model was positive and negative and statistically significant respectively. While the impact of industry structure and urbanization rate is not statistically significant. Regarding the results of the regression model, we can reduce the inequality in order to attain sustainable development. [ABSTRACT FROM AUTHOR]

Although the Turkish economy has adopted an export oriented approach as a goal, export revenues have not reached at the expected level yet. Today, it is a well known fact that in order to increase export revenues, one country should produce high value added products. To realize this, a country has to invest in technology and improve vocational school education. In this study, socio-economic situation of a vocational school in Turkey is investigated. The results of the study show that the vocational school students are coming from low-income and less educated families. This situation is affecting badly their personal development from secondary education until higher education years. The students usually graduate from the vocational school and start their careers, without having the adequate academic skills and knowledge of a foreign language. [ABSTRACT FROM AUTHOR]

As a socioeconomic index, inequality in distribution of income and wealth is considered as a marginally sensitive political variable that is simultaneously highly prone to being affected by political structures. On this basis, the recent process of democratization has yielded in occurrence of a series of economic evolutions among which, the most disputed one is redistribution of income and inequality of the former and wealth. The objective of the present research is to investigate and compare the relation between democracy and distribution of income in a selection of member countries of OECD and those of The Islamic Conference between 2001 and 2014. The econometric method used in this research is panel data regression. Results indicate that democracy has a significant impact on GINI coefficient among member countries of OECD and The Islamic Conference. In terms of reduction GINI coefficient, democracy has a greater impact on member countries of OECD compared to those of The Islamic Conference. This shows that compared to member countries of The Islamic Conference, member countries of OECD are more sensitive to democracy. In other words in such societies the right for having a voice expands to the lower classes and economic decision makings are removed from the mere dominance of the few wealthy. In this case, the voters are those who belong to classes of lower incomes and respectively, the tax rate that determines the amount of redistribution and is obtained through polling, increases and resultantly redistribution increases. This is followed by improved living conditions among the poor and the needy people. [ABSTRACT FROM AUTHOR]

In the context of the special issue on Joseph Steindl we publish an original manuscript by the same author, containing a paper he presented at the 1990 edition of the “International Summer School for Advanced Economic Studies” (the Trieste School). The manuscript, written in July of 1990, deals with the short and long-run financing of effective demand, and its consequences on the distribution of income and the sustainability of debt and of economic growth, and contains several insights still very relevant today.

This paper studies the reciprocal effects of the two important socioeconomic issues, i.e. inequality of income- health through definition of two indices of health in 30 provinces of the country during 1982-2006. Evaluation of the model in the framework of the said analytical and consolidated data is stable in Pool System and fixed effects method. Although health depends on both factors of average income and income inequality, but based on the investigations, the society health is more influenced by income inequality. Therefore, we can see more health in the society with lower income inequality. The inter-provincial studies performed in various income groups shows that the income inequality is more effective on health of society in the provinces with high and low income. The general conclusions gained from social variables indicate that health situation has positive correlation with education or training; health care and number of insured and also health has strong negative correlation with income inequality and finally weak positive correlation with income average.

El presente trabajo pretende demostrar la posibilidad de obtener tarifas de servicios que incorporen la distribución del ingreso y que, simultáneamente, sean eficientes. Se trata de una investigación sustentada en los fundamentos teóricos de la microeconomía y de la economía del bienestar, así como de las restricciones que presenta el hecho de fijar precios basados en costos marginales. El modelo aplicado, sugiere que el precio establecido por una empresa de servicios públicos, correspondiente al ámbito privado o público, puede incorporar a éste los efectos tanto de la distribución del ingreso como aquellos involucrados en la asignación de recursos, introduciendo en él ciertos juicios de valor explícitosThe present work seeks to demonstrate that it is possible to obtain rates that incorporate the distribution of income and that simultaneously they are efficient. It is a work that is sustained in the theoretical foundations of the microeconomics and of the economy of welfare and of the restrictions that it presents to fix prices based on marginal costs. The model that is applied suggests that the price that a company of public services should establish, either private or public, is a price that takes into account, to a certain extent, effects on the distribution of Income, as well as the effects in the assignment of resources, introducing certain explicit judgements value

The purpose of the article is to describe the main characteristics of the financingof sub-central bodies in federal states. The article focuses chiefly onbodies of an intermediate level, that is, the states that form the federation.The analysis is based on the experience of Germany, Australia, Austria, Canada,Switzerland and the USA. At the same time, the article makes referencesthroughout to the financing of the [Spanish] Autonomous Communities todetermine whether this is in line with the sub-central financing of thosecountries analysed. Finally, it also highlights the manner in which the modelof financing in the new Catalan Statute of Autonomy brings us closer to thecharacteristics of a federal model. The article’s analysis proceeds through theassessment of a series of underlying issues: the degree of decentralizationin federal states, both with reference to expenses and income from taxation;expense functions by levels of government; income structure in governmentsof an intermediate level, highlighting the degree of financial dependence;the tributary power and assignation of taxes at a sub-central level; the subsidiesof taxation levelling, and finally the political-institutional mechanismsof coordination between the various levels of government.

Although the Turkish economy has adopted an export oriented approach as a goal, export revenues have not reached at the expected level yet. Today, it is a well known fact that in order to increase export revenues, one country should produce high value added products. To realize this, a country has to invest in technology and improve vocational school education. In this study, socio-economic situation of a vocational school in Turkey is investigated. The results of the study show that the vocational school students are coming from low-income and less educated families. This situation is affecting badly their personal development from secondary education until higher education years. The students usually graduate from the vocational school and start their careers, without having the adequate academic skills and knowledge of a foreign language. [ABSTRACT FROM AUTHOR]

Collectivist values, based on the ideas of egalitarian social compromise have been basic to the construction of the Welfare State, but today tend to break. Immigration and population heterogeneity thus hinder the identification of citizens with collective values. By contrast, emerging new values based on individual merit, which tends to generate a polarization of attitudes. For those profiles that have been the traditional working class, the social closure is a defence mechanism against competition for redistribution, which is reflected in negative views toward immigration. For those who make up the middle class, high level of education, high income and upper middle position, opinion on immigration and demand for solidarity is not a preferred option because they rely on the success of their individual trajectories. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Social Research is the property of Journal of International Social Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Brazil is a country that presents itself to the rest of the world in a contradictory manner. While it is ranked among the ten greatest economies on the planet, it is also among the four nations with the worst distribution of income. It is among the six main exporters of food, but part of its population experiences famine. It is pointed out as example of anti-AIDS actions while people have suffered from diseases since the 19th century. The social inclusion process, generally of this group of people with no income, who go hungry and have been at the mercy of diseases since the 19th century, is possible, urgent and necessary and depends on the overcoming of two major issues: the first is a new financing standard that permits sustained economic growth, and the second is the construction of a national strategy of social inclusion capable of surmounting the current standard of social policies.

Bringing about a distribution of income that reflects the prevailing views of society has been one of the traditional objectives of public economic policy. There are obviously many alternative ways in which the government of a country can bring about a more even distribution of income. This paper, however, does not deal with these options but rather, concentrates on the changes which can be brought about after gross income has already been generated. In other words, it emphasises the role of budgetary policy on income redistribution. Or, putting it differently, it discusses the role that taxes and public expenditures are supposed to have on redistributing income. JEL: E24, H61, H20, H50

In the nineteenth century, political economists often viewed capital as working against the interests of labor, partly because capital and labor were viewed as substitutes and partly because the interests of the owners of capital often worked against the working class. That changed in the twentieth century as the marginal product theory of wages and human capital theory depicted capital growth as beneficial to labor. In the twenty-first century, Piketty () depicts capital as working against the interests of labor, in much the same way as nineteenth century scholars did. A critical analysis of Piketty's framework based on capital theory from Hayek and later Austrian school economists indicates that Piketty has oversimplified the nature of capital and the way that income is derived from capital. A more accurate representation of the nature of capital undermines the major policy conclusions Piketty has drawn, and demonstrates that market-based profits from capital are beneficial to everyone, regardless of whether most of their incomes come from capital or labor. However, another recent strand of literature that links the interests of capital with the political elite, enabling cronyism that benefits capital at the expense of labor, has a more solid foundation. Market processes produce a commonality of capital and labor interests whereas political processes do not. Capital and Labor, Past and Present, in the Context of Piketty's Capital [ABSTRACT FROM AUTHOR]

In this article a major channel through which financialisation or finance-dominated capitalism affects macroeconomic performance is examined: the distribution channel. Empirical data for the following dimensions of (re-)distribution in the period of finance-dominated capitalism since the early 1980s is provided for 15 advanced capitalist economies: functional distribution, personal/household distribution and the share and the composition of top incomes. Based on the Kaleckian approach to the determination of income shares, the effects of financialisation on functional income distribution are studied in more detail. Some stylised facts of financialisation are integrated into the Kaleckian approach, and by means of reviewing empirical and econometric literature it is found that financialisation and neoliberalism have contributed to the falling labour income share since the early 1980s through three main Kaleckian channels: 1) a shift in the sectoral composition of the economy, 2) an increase in management salaries and rising profit claims of the rentiers and thus in overheads, and 3) weakened trade union bargaining power. [ABSTRACT FROM AUTHOR]

L'interesse di Joan Robinson nel problema della distribuzione del reddito e il suo disprezzo per quello che considera le teorie che hanno cercato di giustificare le distribuzioni esistenti di reddito mai segnalati . Il suo lavoro è caratterizzato da una forte inclinazione per chiari argomenti ben ragionati che non lasciavano spazio per sciatte abitudini di pensiero . La portata ampia e la quantità di scritti di Robinson rendono difficile presentare una valutazione critica dei suoi contributi nel contesto anche di un documento lungo . Quella attuale si concentra sui suoi scritti in cinque aree principali : (i) l'economia della concorrenza imperfetta ; ( ii ) la teoria del rapporto di lavoro ; ( iii ) la teoria di accumulazione nel lungo periodo ; ( iv ) il concetto di capitale e la funzione di produzione ; e ( v ) il problema del tempo in economia che si riflette nei suoi scritti sulla storia tema contro equilibrio . Joan Robinson’s interest in the question of the distribution of income and her disdain for what she considered to be theories that tried to justify existing distributions of income never flagged. Her work is marked by a strong inclination for clear, well reasoned arguments that left no room for sloppy habits of thought. The wide scope and quantity of Robinson’s writings make it difficult to present a critical evaluation of her contributions within the context of even a lengthy paper. The present one concentrates on her writings in five main areas: (i) the economics of imperfect competition; (ii) the theory of employment; (iii) the theory of accumulation in the long run; (iv) the concept of capital and the production function; and (v) the problem of time in economics as reflected in her writings on the theme history versus equilibrium. JEL: B31, E24

Bringing about a distribution of income that reflects the prevailing views of society has been one of the traditional objectives of public economic policy. There are obviously many alternative ways in which the government of a country can bring about a more even distribution of income. This paper, however, does not deal with these options but rather, concentrates on the changes which can be brought about after gross income has already been generated. In other words, it emphasises the role of budgetary policy on income redistribution. Or, putting it differently, it discusses the role that taxes and public expenditures are supposed to have on redistributing income. JEL: E24, H61, H20, H50

Joan Robinson’s interest in the question of the distribution of income and her disdain for what she considered to be theories that tried to justify existing distributions of income never flagged. Her work is marked by a strong inclination for clear, well reasoned arguments that left no room for sloppy habits of thought. The wide scope and quantity of Robinson’s writings make it difficult to present a critical evaluation of her contributions within the context of even a lengthy paper. The present one concentrates on her writings in five main areas: (i) the economics of imperfect competition; (ii) the theory of employment; (iii) the theory of accumulation in the long run; (iv) the concept of capital and the production function; and (v) the problem of time in economics as reflected in her writings on the theme history versus equilibrium. JEL: B31, E24

The literature on the functional distribution of income in postwar years is vast, with economists and statisticians attributing great importance to the topic. The author argues that this is because the division of income between capital and labor has a decisive influence on the growth rate of production. In the first section, the distribution of gross product and national income are analysed. Later, the labor income is dealt with. Finally, the average compensation for employees is considered, in and for itself and in relation to other variables in the economic system. JEL: E25

L'articolo è una traduzione di un manoscritto originale di Josef Steindl, contenente un documento che ha presentato all'edizione 1990 della "Scuola estiva internazionale per studi economici avanzati" (la Scuola di Trieste). Il manoscritto, scritto nel luglio del 1990, si occupa del finanziamento a breve e a lungo termine della domanda effettiva e delle sue conseguenze sulla distribuzione del reddito e sulla sostenibilità del debito e della crescita economica, e contiene numerosi approfondimenti ancora oggi molto rilevanti. The article is a translation of an original manuscript by Josef Steindl, containing a paper he presented at the 1990 edition of the “International Summer School for Advanced Economic Studies” (the Trieste School). The manuscript, written in July of 1990, deals with the short and long-run financing of effective demand, and its consequences on the distribution of income and the sustainability of debt and of economic growth, and contains several insights still very relevant today. JEL: E11, B50, E12, H63

Thomas Piketty’s Capital documents long-term trends in income and wealth in advanced economies. It also provides a theoretical framework for analysing the past and projecting the future. Piketty argues that the ratio of wealth to national income is on an upward trend and that this is responsible for the rising income share of wealth-owners. This note accepts Piketty’s main empirical findings but questions his interpretation. The rising income share of wealth-owners is not due to the over-accumulation of capital, as he claims, but just the opposite. There has been too little real investment. The note also considers the long-term dynamics of Piketty’s model and explores the effect of modifying his assumptions about savings behaviour. Finally, it considers the implications of rising asset prices, which are documented by Piketty but are not adequately taken into account in his theoretical analysis or projection of future trends. [ABSTRACT FROM AUTHOR]

We explore an hitherto unused approach to testing marginal productivity theory. Our method rests on the simple idea that, under the assumption of a linear homogeneous production function, residual profits are informative about the discrepancies between factor payments and marginal products. Our empirical application using data on manufacturing plants in Chile suggest moderate deviations from marginal productivity theory which depend on firm size. [ABSTRACT FROM PUBLISHER]

Abstract: We examine the empirical relationship between the institutions of economic freedom and labor shares in a panel of up to 93 countries covering 1970 through 2009. We find that a standard deviation increase in the Fraser Institute's Economic Freedom of the World (EFW) score is associated with about a 1/3 standard deviation increase in a country's labor share. Starting from the sample mean labor share in our panel, this amounts to about 4.26percentage points. This relationship is robust to considering OECD and non-OECD samples separately. It is also (both qualitatively and quantitatively) robust to controlling for differences in human capital levels, labor productivity, trade union density, and international economic flows. Breaking the EFW into its individual component areas, the regulation of credit, business and labor appears to be the most important source of the positive EFW–labor share relationship. [Copyright &y& Elsevier]

In a context of growing food crisis and where more than one billion people endure hunger, the study of the optimization of the agriculture sector, through the strengthening of the financing means in other to help a big number of poor reveals all its importance. The paper examines how microfinance can favorably contribute to improve the agriculture financing in other to encourage an improvement of life conditions of the poor populations. Innovation and adaptation to the needs of farmers can be instrumented by microfinance. Capacity of farm households has a double influence on the process of poverty reduction : i) through the productivity of agricultural households on the one hand, ii) and the distribution of income on the other hand. This article evaluates both the impact that the financial sector can have on the agricultural productivity and the potential impact of the latter on poverty. Indeed, if the financial sector in general doesn't contribute to improve agricultural productivity it is, however, an important instrument that positively acts in the process of poverty reduction. Besides, there is a negative and non linear relationship existing between agricultural productivity and poverty. The action of the financial sector to the agriculturists can be improved through microfinance, which should then be enhanced and popularized. The development of an adequate and adapted financing through the microfinance in the agricultural sector should be a priority for West African Countries. This will allow a positive influence both on the agricultural productivity process and on poverty reduction process.

We analyze global and euro area imbalances by focusing on China and Germany as large surplus and creditor countries. In the 2000s, domestic reforms expanded the effective labor force, restrained wages, shifted income toward profits and increased corporate saving. As a result, the Chinese and German current account surpluses widened, and that of Germany has proven more persistent, with subdued domestic investment. China is an early‐stage creditor, holding a short equity position and a long position in safe debt. Germany's balanced net debt and equity claims mark it as a mature creditor that provides insurance to the rest of the world. China pays to lay off equity risk, while Germany, by contrast, harvests a moderate yield on its net claims. In both economies, the shortfall of the net international investment position from cumulated current account surpluses arises from exchange rate changes, asymmetric valuation gains, and, in Germany's case, credit losses. [ABSTRACT FROM AUTHOR]

The Gini coefficient is an important index for describing the overall degree of income gap, and usually it is used to measure the income gap internationally. This paper builds a model of calculating Gini coefficient on the file of about Institutions of higher learning post setting management guidance of The Ministry of Education. The Gini coefficient are estimated both in theoretical and in actual. Analysis of the connotation of the Gini coefficient is given. [ABSTRACT FROM AUTHOR]

Ownership is central to how the economic system operates. Yet the topic is widely neglected. This is particularly surprising given the 2007–2008 credit crunch, which created in 2009 the first global recession since the 1930s. Ownership played a crucial role, from the drive for ‘shareholder value’, through to the mortgages for home ownership used to create new financial instruments. The resulting bad debts were taken on by governments seeking to prevent a collapse of the global and national monetary systems. This transformed the banking crisis into a sovereign debt crisis. Whether a new era of global economic prosperity can be found depends on whether the importance of ownership is recognised, with policies for diversifying ownership forms to create systemic resilience. [ABSTRACT FROM AUTHOR]

This paper offers a theoretical discussion of the concept of income in classic economic literature and an estimate of hydrocarbon income in Argentina in the period following the deregulation of the oil sector and the sale of the State company YP S.E. The following are among the main considerations: the increase in joint income after change in national exchange rate policy in 2002 and the rise in energy prices, producer participation in income acquisition for the period 1993-2003, the rise in the income acquired by the National State and consumers by retaining oil exports and the lack of sustainable energy objectives through secondary income distribution on the part of the State. [ABSTRACT FROM AUTHOR]

Copyright of Ensaios FEE is the property of Fundacao de Economia e Estatistica and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)